So you want to retire with a large nest egg and no worries. Well I have the secret. It is really very simple and anyone can do it. Are you ready spent less then you earn and invest the rest in something that will do you money. It really is that simple. Now you will not get rich over night but by the time you each retirement age you will be richer, happier, and most of all you will have finical freedom.

Now you ask how do I do this? Well I will not lie it will be very hard for most people. It requires a lot of time and sacrifice. What it will mean to most people is they will have to reduce out a lot of things that they are doing now. For example, instead of going out and spending $30 for dinner, assume $15 to $25 dollars worth of food, and eat at home. Say you do this 5 days a week and you spend $20 on dinner at home instead of $30 eating out. You will save $10 a day or $50 a week.

Now $50 a week may not seem like much but in a month you saved $200, in a year you saved $2600, in 10 years you saved $26,000, and so on. Now this is just one simple change that anyone can do. Think how much you can place if you do this in other areas of your life. Simple things like switching from name mark butter to a less expensive brand. Maybe change from going out to the movies once a week to once a month. Gash down from having every TV channel on your cable system to basic. Doing this simple little things will help you obtain your goal of being debt free.

You may be thinking if it is so easy why are most people up to their ears in debt. I’ll tell you why because most people don’t know how to make a BUDGET and stick to it. It is very simple. For the next month maintain track of everything you spend and I mean everything for your electric payment, gas for your car, to the candy you bought in the machine at work. If you are married or living with someone then withhold track of both of your spending. Don’t be scared you can do this. The best way is to sustain all your receipts and if you have no receipt write it on a scrap of paper and put them all in a little box in your bedroom. Now the most honest way of doing this is to not even look in the box until the 30 days are up.

When the month is up take out your runt box and make a list of columns with these Headings: FOOD / HOUSING/ TRANSPORTATION/ ENTERTAINMENT/ OTHER. There are other headings you may add but this are the most useful. Now under each head you list what you exhaust in that area.

FOOD/

$125 groceries 12/12,

$25 Taco Bell 12/15,

$1.25 candy bar at work 12/5, etc

HOUSING/

$425 rent 12/1,

$126 electric bill 12/8, etc.

TRANSPORTATION/

$35 gas 12/4,

$145 auto insurance 12/15,

$7 car wash 12/23, etc

ENTERTAINMENT/

$75 Cable bill 12/3,

$35 movie (Hot Fuzz) star cinema 12/8,

$25 John’s school play 12/20, etc.

OTHER/

$15 football bet 12/4,

$35 aunt Susan’s Christmas gift 12/12, etc.

Please note that I have included the amount, what it was for, and the date. This is all important information. After all you can’t control your spending if you don’t know where it is going. Execute sure that you including everything and be honest about it. If you spent $75 on beer buying rounds for the boys write it down. This is very important to the next step.

Now that you made your list of your monthly spending next you must make a list of your monthly income. This list will be a lot shorter. Again make certain you include everything. If you’re a student and your mom sends you $20 a week to benefit you buy your food and other necessities. Make sure you write it down.

Here is the really scary portion add up all your monthly spending. Total each column separately. then add your totals together. So they look something like this:

FOOD $445

HOUSING $1254

TRANSPORTATION $232

ENTERTAINMENT $345

OTHER $150

TOTAL SPENDING $2426

Everyone’s totals will be different then my example. Some will be higher and some will be lower, but the considerable thing to remember is to be honest about your figures. If you cheat on your numbers the only one you will be cheating is yourself. So don’t do it.

Next you must total up all your income. Again make distinct you are honest about what you build down. If you received a bonus for Christmas make sure you put it down.

Lastly you will subtract you monthly spending from your in come like this:

MONTHLY INCOME $2123

TOTAL SPENDING $2426

NET INCOME -$303

Remember it is not uncommon to regain a negative net income. In fact I would bet most people will get one or cessation to it. So how do we fix that? Well like I said this will be hard for most people but if you wish to build a nice nest egg for retirement or even get out of debt them you will do this for yourself and your family. Here is the secret word that will get you from where you are to where you want to be. CUT. That’s right cut out or cut back on all the stuff that you don’t need or can do less of. Cut abet on eating out for lunch. Bring a sack lunch. Don’t go out to the movies once a week. Go twice a month or maybe even once a month. Cut back on the gas. Plan the quickest and shortest route for running your earns. Opinion ahead before going to the supermarket. Check out the ads, clip coupons, write out a weekly menu, write down a shopping list, and most important stick to it.

Go back to you list of monthly income and really look at your spending. Is there a pattern there that you can change. For example do you go out every Friday and Saturday night to the club, the movies, or out to a sit steakhouse. Cut assist on it. Just go out on Friday and spend Saturday doing something cheaper go to the beach and watch the sunset. Have a moonlight picnic with someone you love in your own backyard. Or Stay home with a good book and some herbal tea. There are many ways to cut back on your spending.

Ask yourself where can I cut back? What can I live without? What can I do instead of this that will save me money? It is important when you are out to assume to yourself can I afford this? If you the retort is no, then you should not do this.

Look at your monthly spending and place it next to your monthly income again. Then plot a line through everything that you spend that month that you could have cut out. Do you really need to subscribe to every channel on your cable system or better yet how often do you watch it. Do you behold it enough to justify the cost or can you get away with buying rabbit ears.

Now make a new list of your monthly spending only this time leave off everything that you slice out. Try to cut back enough to where your monthly spending is about the same or less then you monthly income. Got it. Once you get the numbers to match go back and do it one more. This time really cut it to the bare bones. Once you are done with that you are ready to make a BUDGET.

This is how you do it. Write the columns again: FOOD/ HOUSING/ TRANSPORTATION/ ENTERTAINMENT/ OTHER. Add up the columns in your original monthly spending paper. This time don’t include all the stuff you crossed out. This is all the things you are going to cut out on the next month. Now take each total and write it under each heading like this:

FOOD/

$400

HOUSING/

$1200

TRANSPORTATION/

$400

ENTERTAINMENT/

$300

OTHER

$50

Now this is your budget for the month. The most honest way to do this is again to save every receipt and to write down all your spending. Except this time you must be aware of what you are spending. Every night objective before you go to bed or every morning regain up and write down everything you spend that day or the night before on your list. Now don’t worry if you don’t make your BUDGET the first month or even the sixth month. What is important is that before long you will come in under budget and when you do you will be on your way to your goals.

The second part of this is to use your saving to your advantage. What you want to enact with your BUDGET is to save at least 10% or more of your income so you can make your money work for you. How do you do that? Simple grasp a portion of your savings and invest it in something that you believe will acquire your money grow but that is another subject.